Iridium Bank, a bank headquartered in Australia reports the following balance sheet (in billions AU$). Liabilities Assets Cash 10 Deposits 70 Government securities 20 Short-term CDs 5 Retail loans 40 Long-term debt 33 Corporate loans 40 Fixed assets 5 Other assets 5 Common shares 12 Its long-term debt (liability side) consists entirely of USD-denominated, fixed-rate bonds, exposing the bank to fluctuations in the AUD/USD exchange rate. a. Is Iridium Bank negatively exposed to a USD appreciation or depreciation relative to AUD? (2 marks) b. Discuss how Iridium is negatively exposed to the exchange rate fluctuation. That is, identify those elements in the bank's income statement and/or balance sheet that would be impacted. Note that the debt is not marked-to-market. (4 marks) C. Aside from foreign exchange rate swaps and other off-balance sheet instruments, what other steps can Iridium Bank take to mitigate the risk? Describe 1 option. (4 marks)